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AbbVie (ABBV) Tops 1Q Earnings Estimates, Announces Deal

North Chicago, IL-based AbbVie ABBV, which has been in the news thanks to its hepatitis C virus (HCV) treatment Viekira Pak as well as its acquisition of Pharmacyclics, is best known for its autoimmune disease drug, Humira.

Humira, the company’s flagship product which is approved for a wide range of indications, is a major contributor to AbbVie’s top line. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on Viekira’s performance as well as pipeline updates. Key players in the HCV market include Gilead’s Sovaldi and Harvoni and Merck’s recently launched Zepatier.

Meanwhile, the Pharmacyclics acquisition has diversified AbbVie’s product portfolio with the addition of Imbruvica.

ABBV has a pretty good earnings track record with the company delivering positive earnings surprises in three of the last four quarters with an average surprise of 4.85%.

Currently, ABBV has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: ABBV's first quarter earnings came in at $1.15 per share, beating the Zacks Consensus Estimate of $1.13.

Revenues Beat: AbbVie posted revenues of approximately $5.96 billion, just above the Zacks Consensus Estimate of $5.91 billion.

Key Stats: Humira sales came in at $3.6 billion. First-quarter Imbruvica sales were $381 million. Viekira sales were $414 million in the first quarter.

Announces Acquisition Deal: In addition to reporting first quarter results, AbbVie announced that it will be expanding its presence in oncology through the acquisition of Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) for about $5.8 billion in cash and stock and another $4 billion on the achievement of milestones.

Lowers 2016 Outlook: AbbVie lowered its 2016 EPS outlook to reflect the impact of the Stemcentrx acquisition which is expected to dilute earnings by 20 cents. The company’s new guidance is $4.62 to $4.82 per share. The Zacks Consensus Estimate is currently $4.99 per share.

Check back later for our full write up on this ABBV earnings report.

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